Assignment on Banglalink

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Assignment
On
Banglalink
Course code: BUS-113
Course Title: Introduction to Business
Submitted to

Sohel Rana
Lecturer Department of
Business Administration
Submitted by
Group Name: The LEGENDS of BBA
Name
ID
Md. Ahadujjamanrony
1001010131
Faglul Karim Raihan
1001010142
Abdul Aziz
1001010127
Shubashesh
10010101
Ashfaqur Rahman
1001010141
Sec-C, 24th batch

Department of Business Administration
Leading University, Sylhet
Date of Submission: May 5, 2010

1

Introduction:
There are currently six (6) mobile operators companies in Bangladesh. Banglalink is one of them. It is the second largest cellular service provider in Bangladesh after Grameenphone. As of November, 2009, Banglalink has a subscriber base of 12.99 million. It is a wholly owned subsidiary of Orascom Telecom.Banglalink had 1.03 million connections until December, 2005. The number of Banglalink users increased by 257 per cent and stood at 3.64 million at the end of 2006, making it the fastest growing operator in the world of that year. In August, 2006, Banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections. On August 20, 2008, Banglalink got past the landmark of 10 million subscriber base. Banglalink entered start the market with a promise of making mobile phone affordable for people. There are large populations in Bangladesh. When banglalink didn’t enter to purpose in business of Bangladesh very few people used mobile phone for communication. So, banglalink tried to connect large number of population. Which were outside the attach of communication. Banglalink succeed to perform its purpose. Banglalink was the first operator to introduce a flat rate for all call and thus such way, banglalink has helped middle, lower- middle and lower class people.

Background of Banglalink:
Sheba Telecom (Pvt.) Ltd. was granted license in 1989 to operate in the rural areas of 199 upazilas. Later it obtained GSM license in 1996 to extend its business to cellular mobile, radio telephone services. It launched operation in the last quarter of 1997 as a Bangladesh-Malaysia joint venture. In July, 2004, it was reported that Egypt based Orascom Telecom is set to purchase the Malaysian stakes in Sheba Telecom through a hush-hush deal, as Sheba had failed to tap the business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and Bangladeshi partners. An agreement was reached with Orascom worth US$25 million was finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout and because of the feud. The main reason for the undercover dealing was the joint venture agreement between the Bangladeshi and the Malaysian partners, which dictates that if any party sells its Sheba shares, the other party will enjoy the first right to buy that.

2

Integrated Services Ltd. (ISL), the Bangladeshi partner, was being ‘officially’ shown as purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's liabilities. In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (“Sheba”). It was acquired for US$60 million. Sheba had a base of 59,000 users, of whom 49,000 were regular when it was sold. Afterward it was re-branded and launched its services under the “Banglalink” brand on February 10, 2005. Banglalink’s license is a nationwide 15-year GSM license and will expire in November, 2011.

In March, 2008, Sheba Telecom (Pvt.) Limited changed its name as Orascom Telecom Bangladesh Limited, matching its parent company name.

Nature Type and Size:
Nature of operation:
Banglalink GSM Ltd. provides mobile telephony services in Bangladesh. It offers prepaid and post-paid mobile connection services. The company also provides various value-added services, such as call forwarding/divert,...
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